Frequently Asked Questions
Do I need a practice broker in order to sell my dental practice?
Not always. Many practices are handled by the dentist himself; however, the advantages of using a practice broker are many, and most doctors find that not only is their transition handled more efficiently by using a broker, but most practices sold by a broker, will bring a more favorable price to the seller, than if handled by an individual with no experience in fine tuning a practice sale. This difference in value received usually more than covers any expenditure created by the broker's fee.
What can a practice broker do for me?
A broker can find and qualify a buyer to whom your practice may be presented. The broker will help market the practice to potential buyers in a manner that presents the practice in its best interest. Brokers also act as a facilitator in any negotiations which may be necessary in selling the practice, which helps remove the concerns and emotions from the negotiating table. The assistance brokers may provide in the development of contracts, and the consulting processes with attorneys and accountants is invaluable. It is a wise person who surrounds himself with knowledgeable people when dealing in areas he does not fully understand.
How do I know what price to place on my practice?
The value placed on your dental practice is critical for a successful practice sale. ADS Professional Practices can help you in establishing a price that is fair to both the buyer and the seller. The advice of dental suppliers, your dentist friends and untrained accountants and attorneys for establishing the selling price of a dental practice are dangerous. Accurate comprehensive practice valuations must be done by those knowledgeable in the techniques and market performance of practice values and sales in your geographic area. Practices that may appear similar may vary widely in value. Differences in services rendered, the longevity of staff and doctor, operating overhead, location and transferability are only a few of the nearly seventy points of practice characteristics used by ADS Professional Practices in the development of an accurate practice valuation. We utilize several accepted methods of practice valuation and average the results to insure a fair and accurate price to place on each of our practice listings. Lending institutions will not make loans based upon an uninformed guess or unqualified estimates of practice value.
How soon should I get started if I want to sell my practice?
If you are reading my web site, then you have already taken the step to begin the investigative process of selling your practice, and I congratulate you for that. I believe that one should begin to think about his own practice transition when he first begins to practice. If you are now at the point where you are considering selling your practice, for whatever reason, then you cannot begin too soon. Selling a practice takes careful planning, and requires good business decisions. The practice brokers of ADS Professional Practices can be of great help to you in accomplishing your transition goals, and our pre-listing consultations, regarding potential practice sales, are absolutely FREE of charge.
Will I have to carry the note myself, for the practice sale?
A practice good broker should have numerous sources for practice sales financing and it is seldom necessary for the selling doctor to be required to be the financier of any portion of the practice sale. ADS Professional Practices has an excellent business relationship with many of the lending institutions, best known to specialize in financing professional practice sales. Many of these companies will carry 100%, or more, of the financing necessary to purchase a dental practice, and will do so with rates and terms allowing the buyer to maintain an effective cash flow. Not all banks understand the financing of a dental practice, because a large portion of its value based upon "good will." The lending institutions used by ADS Professional Practices are all very familiar with all aspects of financing dental practices and are anxious to have our business.
What about a buy-in, or buyout of my practice?
If you wish to continue practicing for a period of time, and/or wish to slow down and gradually leave the practice, then a buy-in from another dentist may be something for you to consider. These agreements are often stressful for both parties and, unless structured exceptionally well, often create problems. If one is already involved in a partial sale or associate arrangement, then the buyout is the ultimate goal. In these scenarios, ADS Professional Practices can help you establish a value for your practice sale and guide you through the process of a partial sale or an outright sale.
Should I just hire an associate?
If you wish to continue practicing at a pace close to what you practice now, and you have enough business in your practice to support both you and another dentist adequately, then an associate arrangement may be something you should consider. ALL associate arrangements MUST include written plans for a future buy-in and/or buyout of the dental practice, and those details should be clearly spelled out in a contract from the very beginning of the associate arrangement. Failure to do so can destroy future sales and relationships between the dentist parties. ADS PROFESSIONAL PRACTICES can assist you in these considerations.
Not always. Many practices are handled by the dentist himself; however,
the advantages of using a practice broker are many, and most doctors
find that not only is their transition handled more efficiently by
using a broker, but most practices sold by a broker, will bring a more
favorable price to the seller, than if handled by an individual with no
experience in fine tuning a practice sale. This difference in value
received usually more than covers any expenditure created by the